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The ORIGINAL LENDER of NOT requiring any of the below: NO Application, tax returns, credit check, appraisals, pre-inspection, prepay penalty, upfront fees, survey, bank statements or employment!
Bellaire, TX has 50 fix and flip hard money lenders offering loans in the city. The median amount for loans in the city is $282,750. Rates on hard money loans issued to Bellaire investors average 11.9%. The median length for notes is 21 months. The average loan offered in the city carries a 2.8 point origination charge. 74% is the mean loan-to-value (LTV) for offered by lenders in Bellaire.
Anna is an investor in Bellaire, TX. She finds an run-down property for sale in the Meyerland Area neighborhood and wants to remodel it and re-sell it for a profit. The property costs $320,000 but she doesn't have the full amount so she takes a private money loan with Green Square Investment Company. Since the lender agrees to a 80% loan-to-value, Anna will need to put 20% down and the total amount of the note will be $256,000. The parameters of the loan dictate a 11% note for 12 months. They also stipulate a 1 point origination fee, that will also be paid upon closing.
In accordance with the terms of the note, Anna will be required to pay a $2,560 origination fee in addition to 20% of the sales price, or $64,000, since there is a 80% LTV. After the deal is closed and Anna takes over the property, she will have to begin making monthly payments of $2,347 to the lender ($256,000 principle x 11% / 12 months). If Anna sells the rehabed project for $480,000 at the end of the 12 month term, her total profit (not including remodeling costs) would be $129,280. This is calculated by taking the sales price ($480,000) and subtracting the original note amount ($256,000), the origination fee ($2,560), the funds she brought to closing ($64,000), and the total interest expenses ($28,160).
Frances finds a property in the Woodlake - Briarmeadow area of Bellaire, TX to renovate and resell. Because she does not have enough cash to buy the property outright, she takes a fix and flip loan from Red City Investment Corporation with the following parameters:
a) A $210,000 sales price, b) a 55% loan to value (LTV), c) a 6 month term, d) a 10% interest rate, and e) a 5% origination fee.
After the rehab project is completed, if Frances sells the project for $294,000, the outcome would be as follows:
$294,000 sales price
- $115,500 principle on note (55% LTV)
- $94,500 down payment (45% on 55% LTV)
- $5,775 origination fee (5% of the $115,500 principle amount)
- $5,775 total interest paid (6 months x 10% interest)
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= $72,450 total profit (doesn't include taxes or rehab costs)
The ORIGINAL LENDER of NOT requiring any of the below: NO Application, tax returns, credit check, appraisals, pre-inspection, prepay penalty, upfront fees, survey, bank statements or employment!
With more than $12.3B in funded loans, Kiavi is one of the nation’s largest private lenders to residential real estate investors!
Funding Fix & Flip, Ground-Up Construction, and DSCR loans in 35 States. We're the lender for real estate entrepreneurs looking for fast funding, fair pricing, and amazing service.
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Offering Fix and Flip, Bridge, and DSCR loans. With same day approvals, 3-5 day close time, and lending in 47 states, Park Place Finance will get your next deal funded fast!
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